According to a World Bank report, only cryptocurrencies can achieve UN export rates.

The World Bank recently researched global currency trading and found some “favorite” findings from this study.

1. Average cross-border remittances to South Asia are 4.98%, with South Asia being the cheapest region for remittances.

2. The average cross-border remittance rate in Sub-Saharan Africa is 8.47%, and this region is the most expensive region in the world for remittances.

The World Bank also found that when using foreign remittance providers such as banks, the average rate of return was 10.89%, which means that the costs of returning existing financial companies are more. students.

Only cryptocurrencies respect UN transfer rates.

The World Finance Corporation noted in its report that mobile operators have the lowest money transfer rates, with an average return rate of less than 3%. Meanwhile, this research report, “Estimates excluding cryptocurrencies,” shows that the weighted average of global cross-border exports (GWA) fell slightly by 5.03% from the second quarter of 2020 to the third quarter of 2020. 5.0% trimester.

The World Bank has also developed a new concept called “Global Rebate Rate”, which aims to measure the cost of cross-border remittances across countries / regions. According to the report's data, the world average of world exports recently increased from 9.67% in the first quarter of 2009 to 6.75%. In 11 years, the share of traditional exports has fallen by only 2.92%.

Although the value of international exports across borders is declining, only cryptocurrencies are meeting UN targets, according to research from the World Bank's Q3 report. As the world's largest financial institution, the World Bank has introduced another average of all debt measures to better track average international remittances across borders. The average price of digital remittances in the "World Remittance Price" database. On the basis of this rating, the World Bank notes:

“The global average digital return rate in the third quarter of 2020 is 5.29%. At the same time, the average non-digital remittance is 7.24%. ”

Cryptocurrencies are not yet included in "Global Payments" data, but cryptocurrencies are a faster and cheaper way to exchange currencies between countries.

Cryptocurrency is a cheaper alternative to currency exchange.

To better illustrate that cryptocurrency is a cheaper option, let's take Bitcoin as an example. The cost of sending to the Bitcoin network is very low like Bitcoin Cash (BCH) and Dash (DASH), but the cost of wire transfer (MTO) is too high compared to them. In Q3 2020, the average cost of sending or paying $ 100 with Bitcoin Money was less than a cent, much like Dash and Ripple (XRP). In parts of South Africa, interest rates of up to 10% should be exchanged for $ 100 between the two countries, and sometimes more.

Fast conversions between Bitcoin and Ethereum are obviously faster than regular currency exchanges, but sometimes they don't come cheap. According to research data from Bitinfocharts, at the start of the third quarter of 2020, the average exchange rate for the Bitcoin and Ethereum networks was $ 1.51 and $ 0.70, respectively. However, since then the exchange rate between the Bitcoin and Ethereum networks has gradually increased. For most of the third quarter of this year, the average price between the Bitcoin and Ethereum networks remains below $ 5 (i.e. if the export price is $ 100, all exchanges will have need an average price of $ 5), but sometimes more than that. high.

Can cryptocurrencies be used to achieve the United Nations Sustainable Development Goals?

Since exchange rates are only a small fraction (sometimes 1%) of cryptocurrencies, cryptocurrencies like Bitcoin Money and Ripple can help meet the United Nations Sustainable Development Goals (SDGs), the provisions of article 10. may. vs. United Nations Sustainable Development Goal.

In article 10.c of the United Nations Sustainable Development Goals, the United Nations and other countries committed to "reduce the exchange rate of migrants to less than 3% and to eliminate exports with a rate of transfer of 5% or more ”. . According to a timetable demanded by the United Nations, this target is expected to reach 2030, but more and more migrants are starting to use cryptocurrencies because it is a cheaper and easier option. .